Landlord Guide

Landlord Guide

“Being asked to look after
a Landlord’s property is a
serious responsibility. One
of the most important things
in managing a property is
trust. If a landlord is living
hundreds of miles away they
need to know they have an
agent they can rely on. It’s
all about personal service
and treating the Landlord’s
property the same way I
would treat my own.”
Michael Clarke MARLA, Lettings Director
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Welcome to
Mackenzie Smith Property
Lettings & Management
We are passionate about delivering the highest standards of personal
and professional service to our clients from the initial valuation through
to the end or renewal of a tenancy.
The area we cover is between junction 4 and 6 of the
M3 across a wide area of North Hampshire and over
the borders into Surrey and Berkshire, covering key
commuter locations and appealing character settings,
in and around Farnborough, Fleet, Ash Vale, Hook and
Hartley Wintney.
We believe that each of our clients should receive a
highly tailored personal service, to feel as if they were
our only client; and use our detailed local knowledge
to provide accurate valuation advice to aid our clients’
decision making.
Michael Clarke MARLA
Lettings Director
Within this guide you will find all the details about the
lettings process, our services and landlord obligations,
though we are always on hand to answer any
questions you may have.
We look forward to being of service.
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“As landlords, the professional relationship
with our letting agent is critical to the success
of our property let. Michael has a pleasant,
calm and professional personality coupled with
knowledge, experience and clear capability
in the letting market. The professional input,
excellent service and personal support has been
extremely valued over the years and we honestly
believe Michael is an excellent letting agent.”
Mr & Mrs S
4

Becoming a Landlord
Becoming a landlord can be quite daunting however we endeavour to
provide all the support our clients need to have a smooth let and to provide
opportunities should a landlord wish to expand their portfolio.
Whatever your reasons for letting your property we are
able to help. Mackenzie Smith offer a range of service
levels depending on our clients requirements providing
full property management, letting and rent collection
or tenant finding services.
Homeowners and property investors alike have many
demands on their time and cannot always be available
to handle day to day events in connection with their let
and or to let properties.
Full Management offers a comprehensive solution
to the smooth running of a tenancy; we can deal
with a spectrum of maintenance issues from full
redecoration to fixing a leak, with our database of
reliable contractors and craftsmen on hand to respond
to everyday or emergency calls as soon as possible.
ARLA Membership
Mackenzie Smith Property Lettings
& Management are members of the
Association of Residential Letting
Agents (ARLA), the only professional
membership and regulatory body for
lettings agents in the UK.
ARLA members are qualified
professionals who adhere to a strict
code of conduct and must have the
appropriate professional indemnity
insurance; membership of ARLA also
indicates we are covered by the Client
Money Protection Scheme and that our
clients have a route to redress through
the Property Ombudsman service.
5

The Process
1 Valuation and Advice
During the initial visit our experienced lettings
consultant will meet with you at the property
to carry out a rental valuation, taking into
consideration the location, size and condition of
the property, fixtures and furnishings, as well as
local demand and your objectives.
As a landlord you will need to consider the type
of tenant that will be allowed and will be advised
of any improvements or alterations that might
need to be made to achieve a better rental value.
The aim is to let your property at the best
price in a timeframe that suits you; we are very
experienced and our valuation assessment
reflects this.
Rental valuation is more sensitive than ever;
overpricing by as little as £50 - £100 PCM can
act as a barrier which could stop prospective
tenants from finding your property online to
consider it.
Overpricing can result in void periods which can
in a short time add up to greater losses than
would be faced taking a slightly lower rent PCM.
Our valuation appraisal will be supported by the
provision of comparable let or to let properties
for your reassurance.
2 Service Level
Once a decision has been made to let the
property through Mackenzie Smith there are
a range of service options available. Often the
preferred level is Full Management as this takes
the work away from you and places the onus on
us to make all the arrangements and act as the
key contact for the tenant. We also provide a
rent collection or tenant finding services.
The fee for each service level is a different
percentage of the monthly rental income. In
addition to the monthly fee there is an initial
administration fee which will cover all the work
involved in preparing the Tenancy Agreement.
Additional fees may apply for the preparation of
the EPC, professional photography and
floor plan.
When an existing tenancy is renewed for a
further term there is an extended agreement fee.
3 Preparation
Presenting your property correctly is a good way
of attracting high quality tenants. This will enable
you to secure the best rental return. Sticking
to neutral classic, traditional or simple modern
styles of decor will appeal to the widest audience
of prospective tenants.
Prior to marketing the property an EPC must be
acquired, this is a legal requirement. The EPC or
Energy Performance Certificate is provided by a
qualified Domestic Energy Assessor and provides
a rating for energy efficiency and environmental
impact. The EPC will be valid for 10 years so can
be used for multiple tenancies during that time.
We can arrange the EPC assessment for the
landlord and would be happy to advise you of
the likely cost.
We let furnished and unfurnished properties;
there is no difference in the legal rights or
obligations for the landlord. An unfurnished
property should include flooring, curtains and
light fittings, a fitted kitchen with appliances and
a fitted bathroom.
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Service Options Overview
Full
Management
Rent
Collection
Tenant
Finding
Lettings Consultation ✓ ✓ ✓
Arrangement of EPC (if not in place)* ✓ ✓ ✓
Comprehensive marketing and advertising to find a tenant ✓ ✓ ✓
Accompanied viewings ✓ ✓ ✓
Full referencing and credit checks
(and guarantors if applicable)
✓ ✓ ✓
Negotiation of the terms of the tenancy ✓ ✓ ✓
Tenancy agreement preparation and signing* ✓ ✓ ✓
Arrangement of electrical safety inspection* ✓ ✓ ✓
Arrangement of gas safety inspection* ✓ ✓ ✓
Collection of tenants security deposit and
advance rent
Registration of the deposit with the TDS and holding of
the deposit
Arrangement of independent inventory and schedule
of condition*
Arrangement of inventory check in and check
our reports*
Initial rent receipt and remittance to landlords bank
account via BACS
✓ ✓ ✓
✓ ✓ ✓
✓ ✓ ✓
✓ ✓ ✓
✓ ✓ ✓
Ongoing rent receipt and remittance to landlords bank
account via BACS
Arranging maintenance repairs and estimates
where appropriate
Ensure completion of maintenance and repairs
Arrangement of payment outgoings
Liaising with landlord and tenant at all times
✓
✓
✓
✓
✓
✓
Provision of monthly statements ✓ ✓
Quarterly property inspections with photographic reports
where requested
Arranging tenancy renewals and rent increases where
appropriate
✓
✓
✓
Managing the check-out process ✓ ✓
Advise utility companies of all meter readings and register
them in the tenants name
Deposit reconciliation
Keyholding service
✓
✓
✓
✓
* additional charges apply
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The Process continued
The quality and level of furnishing will have an
impact on which tenants are attracted to the
property; providing a welcoming home which
instils pride in the occupier will be likely to result
in a responsible and respectful attitude from
the tenant. Safety and fire regulations regarding
furnishings do apply; this is detailed within the
Important Information for Landlords section
later in this guide.
4 Inventories and
Schedule of Condition
The Inventory is an important document as it
provides a comprehensive approved record of
the condition of the property for both landlord
and tenant. This document provides accurate
information about the property at the start and
end of the tenancy.
Although appropriate wear and tear must be
considered the inventory provides reassurance to
both the landlord and tenant that there is a mutual
understanding about the condition of the property
to avoid any disputes at the end of the tenancy.
We work with members of the Association of
Independent Inventory Clerks who are able to
supply detailed inventories for a property of any
size and level of furnishing. The tenant usually
pays for the check in cost.
During check out differences between the
inventory and the present condition of the
property are identified and appropriate action
can be taken. The landlord will usually pay for
the check out.
Whether furnished or unfurnished an inventory
is crucial to record the condition of the property
including carpets, curtains, paintwork, sanitary
ware and the kitchen.
Prior to the tenants moving in the inventory
clerk will also take note of the meter readings
for utilities. We will then make contact with the
relevant suppliers informing them of the change
of occupancy and correct meter readings. It
is important for landlords to stop any repeat
payments such as standing orders to the
utility suppliers, but services should not be
disconnected, especially in cold weather and to
avoid delays in reconnection.
Ask us for a quotation.
5 Marketing
Once instructed we will create a description of
your property which will include a summary of
the property, photographs, the EPC, floor plan
and vital information such as the rental price and
availability date.
Good quality photography and a floor plan are
essential as they will increase the response rate
to our marketing activities.
Our lettings staff are supported by a central
marketing team that ensure all the marketing for
our clients’ homes is up to date and innovative,
we have embraced the changes that have arisen
as a result of digital marketing.
To guarantee our clients’ homes are highly visible
to prospective tenants we list all property on
nationally recognised property websites and their
associated apps and affiliates, enabling us to
reach a national as well as local audience.
A growing percentage of property searches are
taking place on mobile devices and we have
responded to this by creating our own mobile
optimised website.
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Feature property editorials allow us to generate
extra promotion online through our Blog and
Thistleblower newsletter as well as gaining local
press coverage. We also use Facebook and
Twitter to introduce properties to social networks.
When you instruct us to let your home we
use a very powerful marketing platform to
support the process. Because we have our
own in house team we are able to react
quickly to any requirement from our offices
and deliver a solution. This can range
from a bespoke advertisement, to editorial
releases and targeted email campaigns.
An email alert service is available to tenants
via www.mackenziesmith.co.uk. We also use
our intelligent software system to match up
applicants with your property.
Like us on Facebook:
facebook.com/mackenziesmithestateagent
Follow us on twitter:
twitter.com/MackenzieSmiths
6 Viewings
Prior to arranging a viewing we will gain a strong
insight into the prospective tenants’ needs and
their circumstances, to determine whether they
are a suitable applicant for your property.
We attend all viewings whether your property is
occupied or vacant. If your property is currently
let we arrange an appointment with the tenants
in situ, who will be given adequate warning to
meet the requirements of the Assured Shorthold
Tenancy Agreement and to prepare the property
for the viewing.
We normally hold a set of keys for the
convenience of all parties. This enables
viewings to take place at an agreed time
when the occupants are not present.
7 Negotiating and
Agreeing an Offer
Once we receive an offer we will notify you
and advise you of any special conditions to
help you decide to accept the offer or not.
We then negotiate on your behalf to ensure
we achieve the best rental income for you.
We will always act in your best interests to
secure the best rental income with a suitable
tenant. Once a mutually satisfactory conclusion
is met we will put into action all the checks on
the prospective tenant, the deposit procedure
and other paperwork.
8 Reference and
Credit Checks
Our aim is to find the best possible tenant for
your property through a thorough selection
process. Referencing and credit checks are
essential to ensure that the tenant is reliable
and meets the financial requirements to enable
your let to proceed.
This includes referencing the tenant by
assessing their employment, renting and
address history as well as their credit
worthiness. If the tenancy is a corporate let, a
company search will be carried out and trade
references will be used. In some circumstances
a guarantor may be required; references
will still be carried out in the normal way.
9

The Process continued
Strict referencing at this point reduces the
likelihood of encountering potential problems
during the tenancy. Marketing will continue until
the referencing process has been completed.
Mackenzie Smith carries out all referencing
through an approved independent
referencing company.
9 Signing the Tenancy
Agreement
The Assured Shorthold Tenancy Agreement,
or other agreement where applicable, outlines
the agreed responsibilities of both landlord and
tenant. It is important that this is thoroughly read
and understood by both parties before signing as
it is a legally binding document.
The Tenancy Deposit Scheme (TDS) is an
insurance backed deposit protection and dispute
resolution service run by The Dispute Service,
established in 2003 to provide independent
dispute resolution and complaints handling for
the lettings industry. The TDS as an independent
service provides a safeguard for both parties.
Their role is to resolve any dispute relating to
the deposit and to hold disputed monies until
disagreements are resolved. The decision by
The Dispute Service is binding on both parties.
The TDS scheme is designed to protect both the
landlord and tenant. The insurers will only do this
for registered agents and as members of ARLA
we are legally required to register a deposit on
your behalf. If you require further information on
TDS a link is available via our website.
10 The Deposit
At the commencement of a tenancy the tenant
pays 1.5 months’ rent as their security deposit.
This is registered with the Tenancy Deposit
Scheme (TDS) and is then held by Mackenzie
Smith in a deposit account as stakeholders for
the duration of the tenancy
This deposit is held on account to cover any
costs that need to be recovered from the tenant
identified during the check out process. Provided
there are no disputes the deposit monies will be
returned in full at the end of the tenancy. The
deposit must be returned within 10 days of the
tenancy provided there is no dispute, if this is not
the case the matter is referred to the TDS.
11 Tenants Move In
We will supply tenants with the agreed number of
keys and ensure they have the correct inventory
and agreement information in hand for their
move in day.
As part of the negotiation we will have agreed
the number of inspection visits that will be
carried out throughout the year to check that the
property is being well looked after.
Tenants will be advised of the correct contact,
either for the property management team
or landlord depending on the service option
selected, in case there are any issues, break
downs or repairs that the appropriate party need
to be made aware of and act upon.
10

A small gesture can go a long way in building a
good relationship with tenants, which in turn can
lead to them showing an even greater respect
for the property. Leaving a folder with instruction
manuals is very useful and can help ensure the
good care of your appliances. Finishing touches
like labelling individual sets of keys or leaving a
welcome card shows thoughtfulness a tenant is
likely to repay.
It is particularly important to leave full instructions
for any security alarm systems that are in place.
For systems with a 24-hour service contract
keyholders and the local police should be
advised of the arrangements. The maintenance
of the security system is the responsibility of
the landlord.
For the various utilities supplied to the house the
suppliers must be advised of any meter readings
and the change of responsibility. Mackenzie Smith
will take care of the gas and electricity suppliers,
advising them of the meter readings and new
contact details. Closing accounts will usually be
sent to Mackenzie Smith for final payments.
We will arrange the transfer of the water accounts
to the new tenant. Metered charges, water and
sewerage rates are the responsibility of the
tenant. We will also contact the relevant local
authority to advise them of the residents name
and start date of the new tenancy; the tenants
are responsible for paying Council Tax for the
property during the tenancy period. Landlords
are responsible for Council tax until a tenant
moves in and become responsible again when
they move out.
Telephone lines and TV aerials are the landlords’
responsibility. The landlord must close their own
account and the tenant initiate theirs as the
associated suppliers will not accept third
party nominations.
We strongly advise any landlord to take up the
Post Offices’ redirection service. There will also
be a number of contacts and suppliers that you
will want to advise if you are moving out of the
property; TV licence, banks, credit cards, loyalty
clubs, charities, subscriptions to newspapers or
magazines, the DVLA and media suppliers will all
need to be updated. www.iammoving.com can
provide a service that can make updating
all these parties much easier.
12 Tenants Extensions
and Checking Out
Approximately 10 weeks before the tenancy is
due to expire the appropriate notices (under the
Housing Act 1988) will be issued to the landlord
and tenant.
The landlord must decide if they wish to continue
to let the property and if so the tenant must
decide if they wish to extend their tenancy. If so
we will draw up an agreement outlining the length
of the extension and any other changes such
as rent so that the extended tenancy is officially
documented. There is a charge for this, please
ask for further details.
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The Process continued
If the current tenant is checking out, the
independent inventory clerk will check the
condition of the property and contents against
the inventory prepared at the beginning of
the tenancy so that any disputes can be
raised and resolved in regard to the deposit,
they will also collect all keys and make the
property secure, as well as taking the closing
meter readings for utilities and the forwarding
address of the tenants for billing reasons.
As long as the property was professionally
cleaned the property should be returned in a
professionally clean condition for your next
tenant or for you to move in to. Fair wear and tear
must be considered, making an allowance for the
original age, quality and condition of items at the
beginning of the tenancy, the average useful life
and reasonable expected usage of the items,
the number and type of occupants in
the property and the length of the
tenant’s occupancy.
A copy of the check out report will be
supplied to you for your records and for
your instructions regarding any proposed
deductions from the tenant’s security deposit.
Properties that are maintained to a good
standard will secure better rental levels
and tenants who are more likely to renew
their tenancy. This avoids costly void
periods. We can provide a list of approved
contractors who will be able to estimate
for maintenance and refurbishment.
12

Important Information
for Landlords
Legal responsibilities
The Landlord and Tenants Act 1985 makes it
an implied term of every tenancy that the landlord
will “keep in repair the structure and exterior’
of the property and “keep in repair and proper
working order the installations in the dwelling for
the supply of water, gas and electricity, and for
sanitation, space heating and heating water.” The
Landlord cannot make the tenant responsible for
these repairs.
There are several vital safety documents that
must be obtained prior to letting a property
to fulfil a landlords’ responsibility to prove the
property is safe at the beginning of the tenancy
and maintained for the duration in compliance
with the Landlord and Tenant Act 1985, these are
detailed below.
The Housing Act 2004 relates to the risk
assessment for residential properties called the
Housing Health and Safety Rating System, this
was developed to guide landlords to assess
all hazards that may be found in a residential
property and address the health impacts of poor
housing, from lighting and socket provision to
fire detection.
A link to guidance on the Housing Health
and Safety Rating System provided by the
Department of Communities and Local
Governments can be found on our website.
The Regulatory Reform (Fire Safety)
Order 2005 is law and builds on existing
regulations to ensure the correct responsible
person is able to take general fire precautions,
to ensure as reasonably practicable the safety of
people in the property and the immediate vicinity.
Thorough guidance is provided within the
LACORS Housing- Fire Safety guide which is
available to download from our website.
The Plug and Socket etc. (Safety) Regulations
1994 and Electrical Equipment (Safety)
Regulations 1994 are concerned with the safety
of consumer goods, applying here to the rental
accommodation and the electrical appliances
within which should be inspected. Landlords are
responsible for ensuring electrical appliances
supplied with the property are safe to use, this
also applies to the mains wiring, sockets and
lighting. We recommend general checks are
carried out prior to the commencement of a
tenancy, that appliances are checked annually
and that the mains wiring and circuits are
checked at least every five years. We can arrange
for one of our reliable contractors to carry out the
work on your instruction.
A thorough Landlords’ Guide to Electrical Safety
is provided by the Electrical Safety Council, this
is available to download via our website.
The Building Regulations 1991 require that all
properties constructed since June 1992 must
have mains operated smoke alarms fitted on each
floor, though the rule does not apply to properties
built prior to this we recommend that any rented
property has a smoke alarm fitted on each floor.
13

Important Information
for Landlords continued
The Gas Safety (Installation and Use)
Regulations 1998 mean the landlord has a duty
to make sure gas appliances, fittings and flues
are safe and well maintained by using a Gas Safe
registered engineer to provide an annual safety
check. Records should be kept for 2 years with
a copy issued to the tenant at the start of the
tenancy or within 28 days to an existing tenant.
For further information see A Guide to Landlords’
Duties for Gas Safety (Installation and Use)
Regulations 1998 from the Health and Safety
Executive on our website.
The Furniture and Furnishings (Fire) (Safety)
Regulations 1988 and The Furniture and
Furnishings (Fire) (Safety) (amendment)
Regulations 1993 requires that all furniture in
rental properties must pass the “match and
cigarette tests”. Approved furniture represents
a lower fire risk and is less likely to produce
noxious gasses if there were a fire. Most
upholstered furniture will have a sewn in label
showing that is has passed this test. If this label
cannot be found the item cannot be used within
the accommodation. Bed bases and mattresses
are not required to bear a permanent label but
compliance will be indicated if the item has
a label stating that it meets BS7177. Period,
antique or pre 1950 furniture is exempt from
these regulations as are carpets and curtains.
If a landlord is found to be negligent of
these duties they may face fines or even
a custodial sentence.
Further guidance and advice available on
our website:
Information on the Tenants Deposit Scheme
Guidance on the Housing Health and Safety
Rating System provided by the Department of
Communities and Local Governments
LACORS Housing- Fire Safety Guide
Landlords’ Guide to Electrical Safety by the
Electrical Safety Council
Guide to Landlords’ duties for Gas Safety
(Installation and Use) Regulations 1998 from
the Health and Safety Executive
Taxation
Income from rental properties is subject to
taxation and as such should be declared by UK
residents to the Inland Revenue. Failure to do so
can result in penalty and interest charges being
imposed on unpaid tax.
For landlords who are non-resident in the UK
the Inland Revenue holds the agent liable for
deduction of tax from rental payments. These
are held by us and paid on a quarterly basis to
the Inland Revenue.
If you live or are intending to live overseas
and have a good tax history, you can obtain
exemption from being taxed at source. A tax
exemption certificate must be acquired by the
landlord. This has to be supplied to your agent to
prevent tax deductions from your rental income.
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We can provide landlords with the appropriate
application form and our agent reference number
on request. Certificates are not transferrable
between agents. Any reimbursements must
be arranged directly between the non–resident
landlord and the Inland Revenue.
Tax Deductions
All landlords are allowed to make certain
deductions from income before calculating
profit, these usually include:
Agent commission, management fees
and administration
Tax accounting fees and certain
legal expenses
Ground rent on leasehold properties
Buildings and contents insurance, rent
guarantee premiums and any insurance
claim fees
Maintenance charges on leasehold properties
and repair and maintenance of grounds,
communal areas, roads and drains, the
cost of lighting to common parts where the
landlord is responsible
Wear and tear allowance for
furnished property
Interest on loans for the purchase and
improvement of investment property
General repairs to the property and items
during the property
It must be noted that deductions only apply
whilst the property is let or to let. We recommend
that landlords take advice from a suitably
qualified accountant.
Insurance
Landlords should take care to confirm that any
existing policies will provide appropriate cover
for the property and its contents. If required
the policy should be amended to suit the new
property use. A failure to inform your insurer
could invalidate any subsequent claim. A
landlord must insure the building and any of
their contents. The tenant must arrange their
own contents insurance.
If you have not selected the full management
service Emergency Assistance Insurance can
provide peace of mind and a cost effective solution
in case of severe emergencies such as failure of
electricity supply or cooking facilities, lost keys,
plumbing problems, leaking roofs or the security
of doors and windows. It must be noted that these
policies are not a repair service through lack of
routine maintenance. Mackenzie Smith can provide
contact details for suppliers of this service.
Legal Protection and
Rent Guarantee
Applicants are carefully assessed to determine
their suitability and their ability to meet the
requirements of the Tenancy Agreement;
however tenants circumstances can change
(illness, redundancy etc.) which may impede
the tenant’s ability to pay the rent.
Mackenzie Smith would strongly recommend
that landlords consider taking up suitable rent
and legal protection insurance to guard against
unforeseen circumstances.
We are unable to advise on specific products as
we are not regulated by the FSA.
15

Landlord’s
Checklist
Complete
Energy Performance certificate (where applicable)
Gas safety Certificate
Electrical Safety inspection certificate
Portable appliance testing (where applicable)
Professionally clean carpets
Professional clean of house to include:
- Oven and hood, including filter
- Windows
- Paintwork
- Inside of cupboards
- Washing machine filter
- Wardrobe interiors
Mattress covers (if applicable)
Fire Safety labels (if furnished)
Clearance of loft void (if applicable)
Sufficient sets of keys for Tenants and Letting Agent
16

Complete
General maintenance, check operation of:
- Draws
- Door hinges
- Locks and window latches
Check all light bulbs and shades
Smoke alarm operational (ideally with new batteries)
Check sealant on basins, baths and showers
Check taps and shower hose for leaks
Clean wheelie bins/dustbins
Remove all rubbish
Clean out garages or sheds
Cancel direct debit payments to utility companies
Arrange redirection of mail with the Post Office
Arrange the termination of any media and telephone services
Carry out garden maintenance to hand over in a neat condition
Prepare a folder with useful household information, appliance
instructions etc to be left in the property
17

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Notes

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